MARKET ANALYSIS FOR CURRENT ACOUNT OF HDFC BANK IN PUNE

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..:: Acknowledgement ::..

I would like to express my gratitude to my project guide Mr. Yuvraj Lahoti for his guidance, co-operation and encouragement towards the project. Also I offer my thanks to Mr. Ajay Arya, Sales Manager, HDFC Bank, for his kindness and help in completing my project. I also thank my parents for their constant love and support which has encouraged and inspired me at every walk of life and to all my friends who helped me to make this project a successful one. Last but not the least, I would like to thank all the employees of HDFC Bank Bhandarkar Road for making me feel a part of the team. Working with you has been a truly gratifying experience.

TRILOK PRAKASH

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..:: Index ::.. Sr.No.

2. Objective 3. Company Profile 4. Products Offered 5. Theoretical Background 6. Research Methodology 7. Data Analysis 8. Findings 9. Limitations 10. Recommendations 11. Conclusions 12. Bibliography 13. Questionnaire

Title

Page No.
3 4 5 17 23 25 26 32 33 34 35 36 37

1. Executive summary

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..:: Executive Summary ::..

After the market boom in retail and the requirement of having a current account for every big and small merchants the future of current accounts in the country will also see an upward growth. The requirement of having a CST (Central Sales Tax) and BST (Bombay Sales Tax) it is unavoidable for any company to remain without a bank account. Every bank wants to make their presence in the sector of current account due to a heavy requirement and cut throat competition. HDFC Bank, the pioneer bank in housing loans in India is also in the present market with their tailor made current account to savor needs of all business type and size and now is proudly stands among the most reliable providers of current account in the country. In my project I analyzed the market potential and the rapport of bank among the customers and the banking segment itself to find the market growth expected by HDFC Bank. I completed the project at the Bhandarkar road branch of HDFC Bank which is the governing branch of all HDFC Banks in Pune division.

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..:: Objective ::..

1. 2. 3. 4. To study the present market trend of current account holders. To study the potential market of current account. To study the marketing strategy for current account. To find requirements of a tailor made current account to suit maximum customers.

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..:: Company profile ::..

HDFC Bank was incorporated in August 1994 in the name of HDFC Bank Limited , with its registered office in Mumbai, India. The Bank commenced operations as a Scheduled Commercial Bank in January 1995.

HDFC is India s premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI s liberalization of the Indian Banking Industry in 1994.

Headquartered in Mumbai, HDFC Bank, has a network of over 531 branches spread over 228 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are serviced through Telephone Banking. The Bank also has a network of about over 1054 networked ATMs across these cities. HDFC Bank s ATM network can be accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus and American Express Credit / Charge cardholders.

HDFC Bank has won many awards for its excellent service. Major among them are

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Best Bank in India by Hong Kong-based Finance Asia magazine in 2005 and Company of the Year Award for Corporate Excellence 2004-05

For the nine months ended 31 December 2005, HDFC Bank Limited s interest income rose 39% to RS30.97B. Net interest income after loan loss provision rose 26% to RS12.63B. Net income increased 31% to RS6.08B. Net interest income reflects an increase in interest, discounts on advances & bills, partially offset by increased interest on deposits. Higher income reflects an increase in other income.

Awards and Accolades Recognition

Over a decade of its operations, HDFC Bank has been recognized, rated and awarded by a number of organizations, which include: Best Domestic Bank in India in The Asset Triple A Country Awards 2005, 2004 and 2003. Company of the Year Award in The Economic Times Awards for Corporate Excellence 2004-05. Asiamoney's Awards for Best Domestic Commercial Bank as well as Best Cash Management Bank - India in 2005. The Asian Banker Excellence in Retail Banking Risk Management Award in India for 2004. Finance Asia Best Bank - India in 2005, "Best Domestic Commercial Bank Best Local Bank India in 1999, 2000 and 2001 respectively and India in 2002 and 2003.

Business Today Best Bank in India in 2003 and 2004. Best Overall Local/Domestic Bank India in the Corporate Cash

Management Poll conducted by Asiamoney magazine.

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Selected by BusinessWorld as "one of India's Most Respected Companies" as part of The Business World Most Respected Company Awards 2004. In 2004, Forbes Global named HDFC Bank in its listing of Best Under a Billion, 100 Best Smaller Size Enterprises in Asia/Pacific and Europe. In 2004, HDFC Bank won the award for Operational Excellence in Retail Financial Services - India as part of the Asian Banker Awards 2003. In 2003, Forbes Global named HDFC Bank in its ranking of Best Under a Billion, 200 Best Small Companies for 2003 . The Financial Express named HDFC Bank the Best New Private Sector Bank 2003 in the FE-Ernst & Young Best Banks Survey 2003. Outlook Money named HDFC Bank the Best Bank in the Private Sector for the year 2003. NASSCOM and economictimes.com have named HDFC Bank the Best IT User in Banking at the IT Users Awards 2003. Euromoney magazine gave HDFC Bank the award for "Best Bank India in 1999, Best Domestic Bank in India in 2000, and Best Bank in India in 2001 and 2002. Asiamoney magazine has named us Best Commercial Bank in India 2002 For its use of information technology, HDFC Bank has been recognized as a Computerworld Honors Laureate and awarded the 21st Century Achievement Award in 2002 for Finance, Insurance & Real Estate category by Computerworld, Inc., USA. Its technology initiative has been included as a case study in their online global archives. Business India named HDFC Bank India s Best Bank in 2000.

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In 2000, Forbes Global named HDFC Bank in its list of The 300 Best Small Companies in the world and as one of the 20 for 2001 best small companies in the world.

HDFC has always been market-oriented and dynamic with respect to resource mobilisation as well as its lending programme. This renders it more than capable to meet the new challenges that have emerged. Over the years, HDFC has developed a vast client base of borrowers, depositors, shareholders and agents, and it hopes to capitalise on this loyal and satisfied client base for future growth. Internal systems have been developed to be robust and agile, to take into account changes in the volatile external environment. HDFC has developed a network of institutions through partnerships with some of the best institutions in the world, for providing specialised financial services. Each institution is being fine-tuned for a specific market, while offering the entire HDFC customer base the highest standards of quality in product design, facilities and service.

Business focus
HDFC Bank s mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the bank s risk appetite. The bank is committed to maintain the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank s business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.

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Capital Structure
The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.311.9 crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank s equity and about 19.4% of the equity is held by the ADS Depository (in respect of the bank s American Depository Shares (ADS) Issue). Roughly 31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders. The shares are listed on the The Stock Exchange, Mumbai and the National Stock Exchange. The bank s American Depository Shares are listed on the New York Stock Exchange (NYSE) under the symbol HDB .

Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co. /Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. The acquisition added significant value to HDFC Bank in terms of increased branch network, expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to cross-sell and leverage alternative delivery channels.

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Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 531 branches spread over 228 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are also serviced through Telephone Banking. The Bank s expansion plans take into account the need to have a presence in all major industrial and commercial centres where its corporate customers are located as well as the need to build a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centres where the NSE/BSE have a strong and active member base.

The Bank also has a network of about over 1054 networked ATMs across these cities. Moreover, HDFC Bank s ATM network can be accessed by all domestic and international Visa/MasterCard, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders

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Management Network
Mr. Jagdish Capoor took over as the bank s Chairman in July 2001. Prior to this, Mr. Capoor was a Deputy Governor of the Reserve Bank of India.

The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was heading Citibank s operations in Malaysia.

The Bank s Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

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Technology
HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the bank s branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class bank. In terms of software, the Corporate Banking business is supported by Flexcube, while the Retail Banking business by Finware, both from i-flex Solutions Ltd. The systems are open, scaleable and web-enabled.

The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

Businesses
HDFC Bank offers a wide range of commercial and transactional banking services and treasury products to wholesale and retail customers. The bank has three key business segments:

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Wholesale Banking Services

The Bank s target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including working capital finance, trade services, transactional services, cash management, etc. The bank is also a leading provider of structured solutions, which combine cash management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery / service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporates including multinationals, companies from the domestic business houses and prime public sector companies. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock exchange members and banks.

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Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers the facility to hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as well. The Bank launched its credit card business in late 2001. By September 30, 2005, the bank had a total card base (debit and credit cards) of 5.2 million cards. The Bank is also one of the leading players in the merchant acquiring business with over 50,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at merchant establishments.

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Treasury
Within this business, the bank has three main product areas - Foreign Exchange and Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the liberalisation of the financial markets in India, corporates need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank s Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

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Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides an independent assessment of an entity s current performance and an expectation on its balanced value creation and corporate governance practices in future. The bank has been assigned a CRISIL GVC Level 1 rating which indicates that the bank s capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices is the highest.

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..:: Products Offered ::..

^^ Plus Current Account ^^

In today s fast-paced world, business regularly requires to receive and send funds to various cities in the country. HDFC Bank Plus Current Account gives the power of inter-city banking with a single account and access to more than 220 cities. Average quarterly balance is Rs. 1 lakh

From special cheques that get treated at par with local ones in any city where we have a branch, to Free collection of outstation cheques (payable at branch locations), to free inter-city funds transfers of up to 100 lakhs, bank s priority services have become the benchmark for banking efficiency. Following are the powerful plus points of the

HDFC Bank Plus current account.

Features and Benefits:

FREE Demand Drafts (without any limit) payable at Mumbai, Delhi, Kolkata, Chennai, Ahmedabad, Bangalore, Hyderabad, Trivandrum, Chandigarh, Bhopal, Nagpur, Jaipur, Bhubaneshwar, Kanpur, Patna and Guwahati. At all other HDFC Bank Branch locations, Demand Drafts will be issued Free up to a total of Rs.50 lacs per month, incremental to be charged @ Rs.0.25 per Rs.1,000, minimum Rs.25/-, maximum Rs.5,000. These drafts are available free only from the Home Branch

Free Funds Transfer- Huge savings!

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One can transfer funds absolutely FREE across all locations, except Dahej, in the HDFC Bank network upto a total value of Rs.100 lakhs per month. any incremental amount above Rs.100 lakhs will be charged at the rate of Rs. 0.50 /Rs.1000.

Easy cash deposit and withdrawal. You can avail of the service FREE, at home branch, as per the branch s discretion. At nonhome branches within the same city, you can withdraw cash up to Rs.50,000/-, but cash deposits are allowed to account-holder (self) only, upto Rs.100,000/- per day at a charge of Rs.2/- per Rs.1,000/-

Cash pick-up and delivery of up to Rs.100, 000/- at a nominal cost.

Free Cheque book with At Par Cheque leaves.

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^^ Trade Current Account ^^ In today s changing business requirements, one needs to transfer funds across cities, and time is of the essence. HDFC Bank Trade Current Account gives the power of inter-city banking with a single account. Average quarterly balance is Rs. 40000.

From special cheques that get treated at par with local ones in any city where we have a branch, to Free collection of outstation cheques (payable at branch locations), to free inter-city funds transfers of up to 25 lakhs, our priority services have become the benchmark for banking efficiency. Read on to know the powerful features of the HDFC Bank Trade Current Account.

Features and Benefits:

FREE Funds Transfer. Huge Savings. One can transfer funds absolutely FREE across all locations, except Dahej, in the HDFC Bank network upto a total value of Rs.25 lakhs per month any incremental amount above Rs.25 lakhs will be charged @ Re.1.00 /Rs.1000. FREE Demand Drafts (without any limit) payable at Mumbai, Delhi, Kolkata, Chennai, Ahmedabad, Bangalore, Hyderabad, Trivandrum, Chandigarh, Bhopal, Nagpur, Jaipur, Bhubaneshwar, Kanpur, Patna and Guwahati. At all other HDFC Bank Branch locations, Demand Drafts will be issued Free up to a total of Rs.20 lacs per month, incremental to be charged @ Rs.0.25 per Rs.1,000, minimum Rs.25/-, maximum Rs.5,000 Free Cheque book with At Par Cheque leaves Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking Free Cheque pick-up facility.

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^^ Premium Current Account ^^

Business needs a partner who can manage your finances while you concentrate on growing your business. Average quarterly balance is Rs. 25000.

You can avail benefits of inter-city banking account with Premium Current Account, that requires an average quarterly balance of only Rs. 25,000 per quarter-offers Payable-At-Par cheque book facility and FREE inter-city finds transfer across our network upto Rs.10 Lacs per month.

A Current Account with the benefits of accessing your account from a large network of branches, and through direct access channels - the phone, mobile, Internet and through the ATM.

Enter into a profitable relationship and access all the privileges flowing your way.

Features and Benefits:

FREE Funds Transfer* across all locations in the HDFC Bank network up to a total value of Rs. 10 lacs per month,(except Dahej), any incremental amount above Rs.10 Lacs will be charged @ Rs.1.50 per Rs.1000/Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking. FREE ATM Card to access your account from the wide network of HDFC Bank ATMs, across the country. Free Cheque book with At Par Cheque leaves.

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^^ Regular Current Account ^^

A Current account is ideal for carrying out day-to-day business transactions. With the HDFC Bank Regular Current Account, one can access his account anytime, anywhere. Withdraw and deposit cash, issue and encash cheques, make balanceinquiries or ask for mini statements, and even request for Cheque books any time, anywhere.

With a vast network of branches in cities all over the country, and access to a multitude of ATM s, customers can keep track of all their transactions anytime.

Features and Benefits:

FREE ATM Card to access your account from the wide network of HDFC Bank ATMs, across the country. FREE 24-hour Phone Banking, Net Banking and Mobile Banking that helps you check your balance, find out the status of your cheque or stop cheque payment. FREE personalized cheque book for enhanced security containing 50 leaves. A charge of Rs. 2/- per leaf is charged for subsequent cheque books.

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^^ Saving Account ^^

An easy-to-operate savings account that allows you to issue cheques, draw Demand Drafts and withdraw cash. Check up on your balances from the comfort of your home or office through Net Banking, Phone Banking and Mobile Banking. Need money urgently? Withdraw cash from any of the 1200 ATM centers spread across the country.

Features and Benefits:

Wide network of branches and over thousand ATMs to meet all the banking needs no matter what s the location Bank conveniently with facilities like Net Banking and Mobile Banking- check to account balance, pay utility bills or stop cheque payment, through SMS. Personalized cheques with name printed on each cheque leaf for enhanced security. Take advantage of Bill pay, an instant solution to all frequent utility bill payments. Instruct for payment over the phone or through the Internet. Avail of facilities like Safe Deposit Locker, Sweep-In and Super Saver facility on the account.

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..:: Theoretical Background ::..

Marketers talk about potential markets, available markets, served markets and penetrated markets. First what is market? A Market is a set of all actual and potential buyers and market offers. The Potential market is the set of consumers who profess a sufficient level of interest in a market offer. The Available market is the consumers who have interest, disposable income and access to a particular offer. The Target market (also known as served market) is a part of qualified available market the company decides to pursue. The Penetrated market is a set of consumers who are buying the company s products. Market potential is the highest limit approached by the market demand as industry marketing expenditure approach infinity for given marketing environment. Total market potential is the maximum amount of sales that might be available to all the firms in an industry during a given period under a given level of industry marketing effort and given environmental conditions. Companies face problem of selecting the best territories and allocating their marketing budget optimally among these territories. Therefore they need to estimate the market potential of different cities, states and nation. To method of assessing area market potential are the market build up method, which is used primarily by business marketers and the multiple factor index method which is used primarily by consumer marketers. Marketing is becoming more of a battle based on information than one based on sales force Marketing is societal process by which individual or groups obtain what they need and want through creating offering and freely exchanging products and services of value with others

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The aim of marketing is to know and under the customer so well that the producer and the service fits him and sells itself. Marketing is one of the most dynamic fields within the management arena. Marketing is an orderly and insightful process with researching market place to understand its dynamics. The marketer uses research to identify individuals or group of people with unmet or latent interest in some products or services. The marketing process targets those markets that the company can satisfy in a superior way. The company must formulate a board strategy and define marketing mix and plan of action to optimize along run performance. Marketing does not start with a product or offering, but with a research for opportunities in the market place. Consumer decision:: making varies with the type of buying decisions. Many products are bought under conditions of low involvement and the absence of significant brand differences. There is good evidence that consumers have low involvement with low cost, frequently purchased products. With these products, consumer behavior does not pass through the normal sequence of belief, attitude and behavior. Consumers don t search extensively for information, evaluated characteristics and make a decision on which brand to buy . Instead, they are passive recipients of information in television or print ads. Ads repetition creates brand familiarity rather than brand conviction. Some buying situations are however characterized by low involvement but significant brand differences. Market segmentation, segmentation is the customer oriented marketing strategy. Market segmentation gives formal recognition to fact that wants and desires of consumers are diverse and so, there is possibility of formulating a specific market offering to a specific category or segment of the market, so that supply will have the best co relation with demand. Varied complex behavior is the root cause of market segmentation. Market segmentation is sub-dividing of a market into distinct and increasing homogenous sub groups of customers, where any group can conceivably be selected as a target market to be met with distinct marketing mix.

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..:: Research methodology ::..

In order to fulfill the above objectives, the project was under taken in HDFC Bank Bhandarkar Road branch from 1st June to 30th July and information was collected through:

^^ Primary Sources ^^

The primary was gathered from personal interviews with the bank employees and higher officials. The entire survey was conducted in HDFC Bank Bhandarkar Road branch, which consisted of information on understanding the level of awareness regarding the alternatives sources. Data was also collected through observation during the training period of 2 months from 1st June to 30th July.

^^ Secondary sources ^^

Information was drawn from published journals on insurance, mutual funds, in house magazines of the bank, Files maintained by the bank etc. Information was also gathered from newspapers and magazines. The data was also downloaded from the Internet. Limitations of the study Limited number of reference books were available. The study was restricted only to HDFC Bank Bhandarkar Road branch and hence may not be applicable to all banks. The information available on the internet, Brochures, internal magazine, leaflets was limited. The employees in the bank had a busy schedule; therefore there was delay in getting the data. There was difficulty in getting exact income; as such some data was confidential and not available at the branch level. The project was completed in two months time so the time available was limited

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..:: Data Analysis ::..

Following are some graphs which represents the present market trends and requirements to serve a customer centric and tailor made service. I used a base of 200 customers for the survey. The method of the survey was personal interaction for completing the questionnaire. A sample of the questionnaire is given in the following section.

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..:: Customer database ::..

35.00%

7.50%

25.00% 20.00%

2.50%

10.00%

ICICI

HDFC

BOM

BOI

Co-Op

Others

The above Graph represents the finding from 200 customers surveyed during the project. It is true that ICICI bank is having the biggest customer data base sharing 35% from the pie. Alongside HDFC is also proving its market potential with 25% of the market share. Co-operative bank is also a close runner with a 20% share being a nationalized bank, sharing a 10% place Bank of Maharashtra is also a key competitor due to its local rapport.

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..:: Demographic Analysis of responses ::..

45.00% 30.00%

15.00%

10.00%

Service

Location

Reputation

Reference

The above graph visualizes the customer s choice of bank depending on very basic but necessary parameters such as service, location, reputation and reference. Leading the preference list is the obvious accessibility of branches and location, but due to the market being customer service centric we have quality of service among major preferences to choose the service provider. Reputation is another parameter along with word of mouth to count as customer requirements..

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..:: Reasons for Dissatisfaction ::..

30.00%

30.00% 40.00%

No personalised Service Hidden Charges

Over commitment

It is a finding and a known fact that it is easy to make customers but difficult to retain them . So I tried finding the reason why most of the customers leave theirs bank and search for other options even if the bank meets their main criteria such as accessibility, that was hidden charges and cost, this is the main criteria why customer change their bank and move money elsewhere in the present market. Also the customers should be treated fairly and equally, when they are not they feel left out. And last but not the least was over promising and under delivering.

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..:: Reasons for Satisfaction ::..

30.00%

15.00%

35.00% 20.00%

ATM/24Hrs Banking Online services

Core banking Loans

World class services are what can make any company reach the top, every customer want to access their money whenever they want and require, so accessibility of money and services still remains the top priority here, with 24hrs banking, large ATM network and Core banking being the top choices.

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..:: Customer s Expectation ::..

40.00%

10.00%

20.00% 30.00%

Transparency in services Reliability Personal attention Mimimum Documentation

All the customers want to know what s happening with their money and what they are advised is correct and will be done. As the above graph represents 40% customers expect the same followed by reliability and personal touch in services.

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..:: Findings ::..

ICICI Bank is the major competitor in the market. HDFC Bank has got a considerable number of customers and stand out to be the second among competitors. Then comes Co-Operative Banks and Bank Of Maharashtra. Most of the customers are fed up with over commitment and hidden charges. Most of the customers like to make relationship with the bank nearer to them. Customers want anywhere banking that is termed as core banking. Plastic money (that includes ATM and credit cards) is widely accepted by the customers. Customers expect bank to be transparent in their services.

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..:: Limitations ::..

The sample population in my study was 200 customers. If compared it with total customers it seems to be small and may not be that much effective in giving accurate and desired results. The time for study was not enough had it been some more time, much in depth study could have been done, which could have been uncovered all the hidden facts. Resistance from certain number of customers to respond due to some reason was also a major limitation.

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..:: Recommendations ::..

HDFC Bank targets mostly higher potential customer, who have more potential to invest. On the other hand ICICI bank offers products for small business also, which has some hidden costs. This is one of the major reason why they are behind ICICI banks in terms of number of customers. To increase the number of customers HDFC Bank should also offer some products for small business.( for example- Zero balance current account.) It is seen that most of the customers are not aware of products and services offered by HDFC Bank. Thus HDFC Bank should pay some attention on advertisement. HDFC Bank has very less sales force than ICICI, this is a reason that customers have grievance regarding lack of approach by HDFC Bank. This part can be improved by increasing the sales force. ( presently in Pune, only 5 branches out of 17 branches has sales team.) Account opening process in HDFC Bank is comparatively complicated and time-consuming. It takes 4-5 working days to generate the account number in HDFC Bank, where ICICI Bank does it in a day. HDFC Bank should consider this important factor. Working hours of HDFC Bank is comparatively lesser. Customers find it inconvenient. Its working hours is 09:30 AM to 03:30 PM . where as now a days some banks work till 8 PM. This factor should be considered by the bank at higher priority.

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..:: Conclusions ::..

At HDFC Bank utmost importance is given to customer retention. HDFC has been a successful lead of the housing loans market. Now with the increase in the competition it is trying to maintain the relation with its old customers along with gaining the new ones. HDFC Bank holds a large market share when we talk about the current account. Moreover they are working for customer satisfaction. Working with a company like HDFC Bank was a great experience. The company provides a lot of opportunities by opening up a lot of avenues for learning new things. The project gave me a good insight into the basic management concepts and also gave me an opportunity to gain awareness towards the complicated issue of customer relationship management.

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..:: Bibliography ::..

Marketing Management Sales Management Company website

: Philip Kotler : Still, Cundiff, Govoni : www.hdfcbank.com

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..:: Questionnaire ::.. Name & Address of the firm:___________________________________________________ ___________________________________________________ Contact Person:-_________________________________ Contact Number:-________________________________ Nature of business:-______________________________ Type Of the firm:-________________________________ Turnover of the firm:-_____________________________ Current Banker:-_________________________________ Whether satisfied the service of current bank: YES/NO___ Reason:___________________________________________________ Opinion about HDFC bank service:___________________________________________________ ___________________________________________________ Any suggestion:___________________________________________________ __________________________________________________

Signature:-

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